Phinma Corp. reported a 37 percent decline in net income to ₱936.87 million in 2023, down from a restated ₱1.5 billion the previous year, primarily due to weaker sales in its property unit and one-off accounting adjustments, the company said on Tuesday.
Revenues, however, rose by 11 percent to ₱23.76 billion, as strategic business units continued to deliver topline growth despite economic headwinds. The diversified conglomerate attributed its improved revenue performance to the solid contribution of its education, construction materials, and hospitality businesses.
A restatement of financials by subsidiary Union Galvasteel Corp. — following a voluntary review — led to regulatory approval from the Securities and Exchange Commission. This resulted in a ₱128.92 million non-cash reduction in consolidated net income and a ₱893.48 million drop in beginning retained earnings for 2023.
Phinma’s balance sheet received a significant boost in 2024, driven by a ₱1 billion stock rights offering in November and a ₱2.52 billion investment by global private equity firm KKR into Phinma Education Holdings Inc., through Phoenix Investments II Pte. Ltd.
Phinma Education saw its net income hit ₱1.19 billion on the back of a 17 percent revenue increase to ₱6.39 billion, fueled by a 12 percent rise in student enrollment across its network in the Philippines and Indonesia. The group also posted an 88 percent board exam passing rate and produced 25 topnotchers in 2024.
In the construction materials segment, Union Galvasteel, Philcement Corp., and Phinma Solar Energy Corp. collectively earned ₱80.64 million in net income on ₱14.3 billion in revenues. The group cited product innovation and expanded sales channels as key growth drivers despite inflationary pressures and stiff competition.
Conversely, Phinma Property Holdings Corp. reported a net loss of ₱98.28 million on ₱2.34 billion in revenues, hampered by lower sales volumes, rising interest rates, and upfront expenses tied to expansion. The company emphasized unbooked revenues from ongoing projects will be recognized as construction advances, particularly highlighting its Saludad township in Bacolod.
Phinma’s hospitality segment, including Coral Way City Hotel Corp., Phinma Hospitality Inc., and Phinma Microtel Hotels, posted ₱65.58 million in net income and ₱591.63 million in combined revenues.
Looking forward, chairman and CEO Ramon R. del Rosario Jr. reaffirmed Phinma’s commitment to leveraging synergies across its businesses and pursuing growth in underserved sectors such as community housing.
“We look forward to executing our pipeline of projects and initiatives supported by our earlier investments geared towards improving more lives,” Del Rosario said.
